Swiss biotech shows healthy growth in 2007

Image courtesy Swiss Biotech

The Swiss Biotech Report 2008 says there was double-digit growth in many key areas. There are currently 220 Swiss biotech companies, 148 of which are drug development specialist and 72 are biotech suppliers. Apart from drug development, there was growth in white biotechs that develop environmental and industrial processes, and green biotechs specialising in agriculture and food.

In 2007 industry turnover increased by 10.8 per cent to CHF 7.116 billion (around €4.4 billion) from CHF 6,424 million. There was a ten per cent increase in employment, and R&D investment by private and listed companies rose by 6 per cent, to CHF 1,696 billion. Investments by new investors increased by 13.5 per cent, to CHF 885 million, from CHF 780 million in 2006.

The data do not include foreign multinational pharma companies and their subsidiaries based in the country.

Switzerland also had Europe’s biggest biotech initial public offering in 2007, when Addex Pharmaceuticals raised CHF137 million. However, the country’s leading biotech Serono was acquired by Merck.

Investment was not limited to big companies. “It is remarkable that relatively small, young companies, which only have some preclinical products so far, achieved some of the larger financing rounds,” said Yvonne Gunsch-Wegmann, Head of Issuer & Investor Relations at SWX, the Swiss Stock Exchange.

This R&D investment is yielding positive results on the product side. “There are more than enough products in the pipeline and the sector can look to the future with confidence,” said Jürg Zürcher, partner and biotechnology leader for Central Europe with Ernst & Young.